Securities / Financial Fraud

For the past four decades, CPM has been one of the preeminent securities litigation firms throughout the United States, returning money by way of settlements and jury verdicts to shareholders and pensions.

RECENT CASES OF NOTE

In re Medical Capital Securities LitigationUSDC Central District of CaliforniaThe District Court in Los Angeles granted final approval of one of the largest settlements in United States history against an indenture trustee. Mark Molumphy served as Co-Lead Counsel for investors in Medical Capital, a medical receivables company based in Tustin, California. Wells Fargo and Bank of New York Mellon served as indenture trustees for investors, responsible for administering trust accounts where the investor funds were deposited. Medical Capital turned out to be a massive ponzi scheme and plaintiffs alleged the banks breached their duties under the trust agreements and disbursed hundreds of millions of dollars to Medical Capital. Wells Fargo agreed to pay $105 million and Bank of New York Mellon agreed to pay $114 million to resolve the actions.

Lehman Brothers LitigationUSDC Southern District of New YorkCPM serves as liaison counsel and represents San Mateo County, Monterey County, the cities of Auburn, San Buenaventura, Burbank, and Zenith Insurance Company in a securities action relating to their investment losses in Lehman Brothers.

In re BP Securities LitigationUSDC Southern District of TexasCPM is Co-Lead Counsel for investors who purchased American Depository Receipts ("ADRs") issued by BP, and suffered damages following the Gulf of Mexico explosion and oil spill. Plaintiffs allege that BP and its senior executives falsely touted BP’s safety and risk management practices relating to its deep sea drilling operations. Plaintiffs prevailed at the Motion to Dismiss stage and are waging in discovery with defendants.

In re Homestore.com, Inc. Securities LitigationUSDC Central District of CaliforniaCPM was Lead Counsel in a securities fraud class action representing CALSTRS against Homestore.com, Inc., its senior officers and directors, its auditors, and other companies who engaged in fraudulent "roundtripping" transactions, increasing revenues by false accounting methods. In 2004 the court approved a settlement in which Homestore agreed to reform its corporate policies and pay approximately $93 million in stock and cash. In 2011, CPM obtained a jury verdict against a Homestore executive for securities fraud. (Jury Verdict 2011)

Pay By Touch LitigationSan Francisco Superior CourtCPM represented investors, including the Getty family trusts, in a securities action against UBS Securities and former executives of Pay By Touch alleging fraud and negligent misrepresentation. (Settled 2011).

California State Teachers’ Retirement System v. Qwest CommunicationsSan Francisco County Superior CourtCPM represented CALSTRS in a securities action for losses in excess of $100 million. The complaint charges certain Qwest executives and directors, its accountants, and banks with violations of state securities laws and alleges that defendants made false and misleading statements about Qwest's financial condition. (Settled 2007).

California State Teachers’ Retirement System v. AOL Time WarnerLos Angeles County Superior CourtCPM represented shareholders in a securities action against AOL for misrepresenting its financials and artificially inflating its stock price. (Settled 2007)